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I have the homebrew channel up and running and emulators working fine. I tried to install USBLoader GX and it says I need to have CIOS running first. It looks like it is going to install it itself but then says 'looking for HDD' and hangs up there. I have a USB HD plugged in to the Wii that I formatted with WBFS Manager and I have a Wii game .wbfs on there. What am I missing?

Well I formatted it on my PC as NTFS, then used WBFS manager and formatted the entire thing as WBFS. I have the file in the root now, do I need to make a new folder?
Also, while I'm asking, if I want to run .wad files for virtual console stuff, can I do that on the WBFS or should I have partitioned it first?